With recent down turn in global economy, manufacturing plants have excess capacity – this is particularly visible throughout SEA. It has created a unique opportunity for many small productions to find their ways in tier 1 and 2 assembly houses. While it is time to benefit from the downturn and enjoy a high level of service from big plays such as Flextronics and Jabil, for low volume productions, one must be cautious for when big volume players return. There is a huge over supply of capacity worldwide, and long term players must carefully chose their business partners to avoid disappointment down the track– marrying the right product, volume and complexity to the right partner is essential for long term success. Develop a flexible and fit manufacturing strategy is critical even when there is oversupply of capacity.
Arjang Safa
SAMEC
Small and Medium Enterprise Consultants
Electronic Manufacturing - complete manufacturing servicesIT Solutions - concept to consumer
Business Operations - ISO, compliance & engineering
SEA – Oversupply of capacity
June 23rd, 2009SME
June 19th, 2009Small and medium size companies are often disadvantaged when it comes to having access to professional services and resources for areas that are not seen as their core activity (value added services). It is frequently perceived that supporting activities (in an engineering environment for instance) are not important and seldom get the recognition they deserve. This argument is usually backed by the fact that such activities’ cost can be a burden on a company that is not yet produced a product – so it is not justified in accounting terms.
Understanding the issues and challenges faced by R&D and small companies, we offer our service to clients on ‘use as need’ basis (or project based). It means you as a customer do not need to have full time personnel on payroll or expensive setup (manufacturing or IT) tools. By engaging samec, you can benefit from low operational cost but take advantage of having professionals to work with, when needed. We have been working productively with a number of successful Australian companies ranging from small (4-10 personnel) to large multi-nationals (with 50+ staff and overseas branches). We liaise effectively with internal departments and work as one team with them (click here).
Established working relation with clients brings other added benefits by utilising and sharing suppliers, contractors, consultants and services.